Organizational

Behavior

HECParis

Schulte & Yong, 2014

1 Negotiations
MathisSchulte
schulte@hec.fr
Spring2014(JanuaryIntake)

GAININGINFLUENCE
through
1. Negotiation&ConflictResolution
2. Motivation&Persuasion
3. Relationships&SocialNetworks
4. Power&Politics
Organizational
Behavior

HECParis

Schulte&Yong,2012

INTRODUCTION:Whatis?

Negotiation: DEFINITIONS
Aninteractivecommunicationprocessthatmaytake
placewheneverwewantsomethingfromsomeone
elseoranotherpersonwantssomethingfromus.

Organizational
Behavior

HECParis

Schulte&Yong,2012

NEGOTIATON101: BargainingZone
Aspiration
point

Reservation
pointRPS

Seller

PositiveBargainingZone(RPS<RPB)

Buyer
Aspiration
point
Reservation
pointRPB

Organizational
Behavior

HECParis

NEGOTIATON101: BargainingZone
Reservation
pointRPS

Seller

Aspiration
point

NegativeBargainingZone(RPS>RPB)

Aspiration
point

Buyer
Reservation
pointRPB

Organizational
Behavior

HECParis

NEGOTIATON101: Surplus
Aspiration
point

Reservation
pointRPS

Seller

SellersSurplus:
X RPS

BuyersSurplus:
RPB X

Buyer
Aspiration
point
Reservation
pointRPB
AgreementX

Organizational
Behavior

HECParis

Exercise: THEEGGS
PREPARATION
Readmaterials(10min)
Thinkaboutreservationandaspirationprices
Thinkaboutyourstrategy&meansofinfluence

FOURPARTYNEGOTIATION(60min)
Findtheotherpartiesofyourgroup
(thegroupnumberisontopofyoursheet)
Organizethemeeting(s)asyoulikeand
whereyoulike

POSTNEGOTIATION
Shakehandsifyoureachanagreement
Seller:Writedownthedeal,findme

SELLER
Eggs/$$$

WARNERROBBINS
Eggs/$$$

GALAXO
Eggs/$$$

HOFFMANLAROUSSE
Eggs/$$$

Evgenii
100/80

Andrew
60/24

Takeaki
100/40

Absar
40/16

Mustafa
100/83

Giovanni
60/30

Vijay
100/30

Dominic
40/23

Felipe
100/62

Vijay

Kapil
100/62

Sitanshu

Pedro
100/63,2

Giovanna

Marc
60/37,2

Siddesh
40/26

Kyoko
100/70

Juan Jose
60/20

David
100/30

Emily
40/20

Richard
100/75

Julie &Antonia
60/22,5

Simone
100/37,5

Diego
40/15

Ibim
40/26

Tim

Etienne

Thierry
40/26

Nina
100/62

Noam

Gladis
100/62

Rida

Armando
82,5/62

Fred
50/36

Karim
32,5/26

Keerthi

Desmond
100/62

Ujjval

Mohamed
100/62

Nitant

Avik
100/80

Arun

Anna
100/58

Rachit
40/22

Andrew
100/62

Marcus

Bernhard
100/62

Sanjeev

THE
SELLER

GOAL

Sellall 100,000
eggs(each
disposedegg
costs$.01)

RESERVATION .65Centsper
egg($65,000
PRICE
total)

EGGS

Buyer1
WARNER
ROBBINS

Buyer2
GALAXO

Buyer3
HOFFMAN
LAROUSSE

Buy50,000
60,000 eggs

Buy80,000
100,000eggs

Buy30,000
40,000eggs

.60Centsper
egg
(irrespective of
quantity!)
Budget:
$36,000

.62Centsper
egg
(irrespectiveof
quantity!)
Budget:
$62,000

.65Centsper
egg
(irrespectiveof
quantity!)
Budget:
$26,000

Nodeal

Lossof$66,000

Waitanotheryearandentercontractmarket

INTERESTS

Comeatleast
Producedrug
evenondealto againstinfant
notupsetboss mortality

Produce
fertilitydrug

Producedog
food

THE

EGGS:Three Scenarios

1)BUYER2BUYSALLEGGS
Maximalprofitforseller:$62,000
Twobuyersgohomeemptyhanded

2)BUYERS1AND3BUYALLEGGS
Maximalprofitforseller:$62,000
Buyer2goeshomeemptyhanded

3)BUYER1,2,AND3BUYALLEGGS
Maximalprofitforseller:$124,000
Allbuyersgetwhattheyneed
Organizational
Behavior

HECParis

TWOAPPROCHESTONEGOTIATIONS &CONFLICTS
DistributiveApproach
FixedPie
Win/Lose
Competitive
Beingfirmonpositions
Influencethrough
tacticmaneuvering

PARTY1

Interests

Position

PARTY2

Position
IntegrativeApproach
ExpandedPie
Win/Win
Collaborative
Beingfirmoninterests
Influencethrough
collaborationandjoint
problemsolving

Interests

Organizational
Behavior

HECParis

WHATHELPSTOFINDINTEGRATIVESOLUTIONS

$62,000

$124,000

Buildtrustandpositiverelationships
Focusoncommonalitiesandcommongoals
Lookforpostsettlementagreements
Askmorewhy questionsthanhowmuchquestions
Giveawaysome information
Butneverdiscloseyourreservationprice! Organizational
Behavior

HECParis

TAKEAWAY:Influencethrough
negotiationandconflictresolution
Thebestwaytoinfluencepeopleistogivethem
whattheywant.
Givepeoplewhattheywantwhileyougetwhatyou
want.
Dothatbyfindingintegrativesolutionsthat
accommodateall partiesinterests.
Theonlywaytofindintegrativesolutionsisby
movingthefocusawayfromyouandbyestablishing
acollaborativeclimate.
Butdontbestupid!
Organizational
Behavior

HECParis

CourseRequirements:ExercisesNDA
NDA
Exercises

ThefirstruleofFightClubis youdonottalk
aboutFightClub.ThesecondruleofFightClub
is youDONOTtalkaboutFightClub
TylerDurden
Thefirstruleofthe
OBExercises